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Paul Smith

Shock as AI founders defect to Microsoft after raising $US1.3b

The AI world has been stunned by the founders of an AI start-up defecting to Microsoft less than a year after raising $US1.3 billion to take on OpenAI.

Paul SmithTechnology editor
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Imagine you’re an investor or an employee in a hugely ambitious two-year-old tech company, with a rock star founding team which has just raised $US1.3 billion ($1.98 billion) in early-stage funding … then imagine you are browsing X and see those founders happily announcing that they are off to take a salaried day job elsewhere.

You would be pretty astonished and angry, right? Yet, this is what has just happened at Inflection AI, and everyone is acting strangely chilled out about it all.

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Paul Smith edits the technology coverage and has been a leading writer on the sector for 20 years. He covers big tech, business use of tech, the fast-growing Australian tech industry and start-ups, telecommunications and national innovation policy. Connect with Paul on Twitter. Email Paul at psmith@afr.com

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    Original URL: https://www.afr.com/technology/shock-as-ai-founders-defect-to-microsoft-after-raising-us1-3bn-20240320-p5fdr1